UPDATE: Verifone Shares Drop On Weak Guidance

Shares of

dropped over 1.6% in after-hours trading, despite the company reporting better-than-expected financial results for the fiscal first quarter. The company's weak forecast exerted pressure on the shares. The San Jose, California-based company posted GAAP net income of $13.8 million, or $0.12 per share, versus a year-ago net loss of $16.2 million, or $0.15 per share. Non-GAAP net income climbed 42% to $0.44 per share from $0.31 per share. GAAP net revenue climbed 11% to $486 million in the quarter, while non-GAAP net revenue surged 11% to $487 million. However, analysts were expecting earnings of $0.41 per share on revenue of $483.4 million. "I'm pleased with our performance in Q1, and the team's accomplishments. We again exceeded our financial guidance despite foreign exchange and macro-economic related headwinds," said Paul Galant, Chief Executive Officer of Verifone. Verifone projects FQ2 earnings of $0.41 to $0.42 per share on revenue of $485 million to $489 million. Analysts has expected earnings of $0.46 per share on revenue of $504.6 million. The company also expects FY15 adjusted earnings of $1.78 to $1.82 per share, versus analysts' estimates of $1.90 per share. It projects net revenue of $1,990 million to $2,000 million. Verifone shares fell 1.63% to $32.65 in the after-hours trading session.